The African Development Bank (AfDB) and the government of Egypt have signed a loan agreement for $50m to help pay for a near doubling of capacity at Egypt’s Sharm El-Sheikh International Airport.
The money comes from the Africa Growing Together Fund (AGTF), a $2bn fund provided by China and managed by the AfDB.
The Sharm El-Sheikh Airport expansion project, whose total cost is estimated at $671m, entails a new terminal building, a new runway and new control tower with associated airfield works, installation of electrical and navigational equipment.
The project is intended to ease movement into and out of the resort city of Sharm El-Sheikh City, and increase passenger-handling capacity at the airport from 10 million to 18 million passengers a year.
This agreement complements earlier signed agreements of a $90m loan from the Bank’s loan window and a $1.8m grant from the Middle Income Countries (MIC) Technical Assistance Fund, all earmarked for the Sharm El-Sheikh Airport Development Project.
"This loan marks the beginning of new efforts by the Bank to support the development of transport infrastructure in Egypt," said AfDB president Akinwumi Adesina at the signing ceremony in Lima, Peru on 10 October.
"The Bank stands ready to continue to support the Government of Egypt in its efforts to reform and significantly increase infrastructure investment," he said.
Photograph: The old Terminal 2 of Sharm el-Sheikh International Airport (Dmitry Karpezo/Wikimedia Commons)
